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  #1  
Old 12-22-2012, 05:48 PM
UFActuary UFActuary is offline
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Default Cheap New Car vs Used Expensive Car (which is better long-term value)?

Here's what I noticed on used car websites.

Taking an expensive 3-year old used car with 40,000 miles on it
Comparing it to a brand new cheap car with 5 miles on it

such that these prices are in equilibrium.


Now lets say 4.5 years go by

The 7.5-year old used expensive car with 100,000 miles on it

is actually a lot cheaper than the

The 4.5 year old cheap car with 60,000 miles on it


But if just 1 year went by, the comparison is the reverse....

Is this because part of the value of a car is in the enjoyment of driving it when it's new? And long-term residual of all cars, however unequal when new, equal out in the end?

Or am I off on this?

Something like this

Short-term value of cars:
(Cheap car loses less value per year than expensive cars, but most of its value in year 1)

So theirs utility in any car being brand new
then a longer term utility in a car being more expensive if less than 50,000 miles on it

then once both of these utilities expire... residuals equal each other out
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Old 12-22-2012, 05:58 PM
UFActuary UFActuary is offline
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More specifically,
the expensive car is a luxury automobile with leather seats and built-in GPS and electric trunk and gets 25 miles per gallon

the cheap car is not leather, just what you basically need, gets 40 miles per gallon and nothing ultra-fancy.
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  #3  
Old 12-22-2012, 06:00 PM
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New Bentley or GTFO
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Old 12-22-2012, 06:08 PM
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toyota corolla ftw
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Old 12-22-2012, 06:50 PM
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Used car prices fluctuate, used car values now are higher than they've been over the last decade. It's nearly scary that a comment of you'd get a better value buying new than used could actually apply in the current times and does depending on the vehicle.

I don't know why I bother posting in your threads......
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Old 12-22-2012, 07:42 PM
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Quote:
Originally Posted by oblivious View Post
Used car prices fluctuate, used car values now are higher than they've been over the last decade. It's nearly scary that a comment of you'd get a better value buying new than used could actually apply in the current times and does depending on the vehicle.

I don't know why I bother posting in your threads......
This theead is actually not that crazy. The OP actually seems like it was written by a non-crazy adult, which rarely happens with UFActuary's threads.
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Old 12-22-2012, 07:51 PM
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pretending you haven't already pissed away the money on the car have you?
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